In case the loan was to be repaid over the span of a calendar year, this would signify a lot in interest fees. The second rationale is that because the loan is supposed to be paid back over a brief time period (1-30 days), and the rate of interest is figured on a yearly basis it makes it seem artificially large. Since virtually nobody goes into a title loan or pay day loan company of their own accord it's a wonder that these varieties of predatory lenders have the ability to remain in business whatsoever.

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